Aftermarket Going For Brakes

SAN JOSE, Calif.--Brakes are on the go as strong sales and better automotive design have resulted in longer car lifespans--thus increasing the number of vehicles on the road.

“This has led to strong demand for brake parts, as worn brakes cannot be ignored. Increased vehicle longevity, combined with new design and consumer trends, will continue to drive this industry to profitable growth,” according to new research from Frost & Sullivan.

The study, “U.S. Brake System Parts Aftermarket,” tags industry generated revenues at just over $2 billion in 1999. Frost & Sullivan projects revenues to reach $3 billion in 2006.

“The number of brake system parts sold each year is directly proportional to the number of vehicles in operation,” says researcher Kavan Mukhtyar. “The number of light vehicles in use from 1996 to 1999 increased from 193 million to 203 million,” Mukhtyar said.

“Vehicle longevity has also reached a new high,” Mukhtyar said. “Vehicle longevity strengthens demand for replacement parts as consumers continue to keep their vehicles longer and drive them farther.”

A number of trends in the manufacturing of cars will also help boost participants in this competitive industry. The increase in the sale of sport utility vehicles and front-wheel drive vehicles, as well as the use of less-durable original equipment parts, combines to open new growth opportunities.

“Today’s new vehicles are designed with smaller brakes made of lighter, less-durable materials which results in reduced brake life,” said Mukhtyar. “SUVs lay higher demands on braking systems, leading to faster brake wear.”

The shrinking do-it-yourself segment of the market is prompting many market participants to align themselves with professional installers to push their products. As the complexity of brake systems has increased, many users are opting to let professional installers handle their brake repairs. Brake parts manufacturers that distribute to these installers should increase the amount of units sold.

“Professional installers generally opt for four-wheel brake repairs and have a tendency to replace brake components rather than repair them,” said Mukhtyar. “It is common practice to replace wheel cylinders and associated hardware and kits to ensure proper functioning of the brake system.”

Frost & Sullivan has also presented its 2000 marketing engineering awards to companies that have “worked hard to make positive contributions to the U.S. brake system parts aftermarket.” The Competitive Strategy Award was given to Dana Corp. The Product Line Strategy Award was claimed by Universal Brake Parts (UBP). The Market Penetration Award goes to Cardone Industries.

For more information, contact www.frost.com.